A bad credit score can negatively impact your long-term financial goals.

Let's look at 8 easy-to-implement ways to improve your credit score.

Clear Your Payment Dues On Time

Repaying/Settling your dues fully will save you from late fees and interest.

1

Aim For Less Than 30% Credit Utilization

Do not max out on your credit card limit and keep a check on your spending habits.

2

Do Not Close Old Credit Card Accounts

Keeping the older accounts open will help build a stronger and longer credit history.

3

Consolidate Your Debt

This means that you can take a new loan(debt consolidation loan) to pay off all your active loans.

4

Limit Frequent Credit Inquiries

When you apply for a loan/credit card, it leads to hard inquiries and if you apply too often for credits, it brings down your credit score.

5

Opt For Loans With Longer Tenure

Choose a long-term loan as the EMI amounts reduce and repayments are easier. This in turn lowers your chances of defaulting.

6

Create A Diverse Credit Portfolio

Maintain a healthy mixture of credit lines. The variety in your credit lines really helps to spike your credit score.

7

Borrow Enough Credit To Generate Credit Report

If you have a credit card but do not use it frequently, you will not have a credit history and in turn no credit score

8

How To Create A Budget In 6 Simple Steps

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